Timmy Dooley (Clare, Fianna Fail)

By any standards, this is a modest initiative aimed at stimulating the economy.

I hope it works. The focus on the tourism sector is a good idea. For some time I have believed the tourism industry is one of the great unsung heroes of foreign investment. We spent much time in the past talking about foreign direct investment and various initiatives in that area. Tourism has epitomised this. We need a greater level of effort in that regard.

However, I am not sure the VAT reduction, which does target the tourism sector, will work in the way the Government wants. For example, if two people go for an early bird dinner costing €50, the amount they will save through the reduction in VAT will not buy a cup of tea, let alone a cup for each of them. It is very meagre.

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